Misrepresentation

Annotations:

• MISREPRESENTATION 
• HAS TO BE FIVE THINGS
• FALSE - dimmick v hallet - cannot be a sales puff needs to be false 
• FACT- bisit v wilkinson - fact cant be a statement of opinion 
• FACT- Esso Petro - statement of opinion allowed as they have special knowledge about petrol 
• ADDRESSED- sydney v rh brown - addess to the mislead party including the message to be passed on 
• INTENDED- peek v gurny- intented to be acted upon 

1. 1. if it puts one party into a better situation - it may be a warranty - Osscar v W
   1. if not it is a mere misrepresentation
2. 2. misrepresentation has to be 5 things
   1. false
      1. dimmit v hallot- cannot be a mere sales puff, has to be a false statement
   2. fact
      1. bissit v p - the fact cannot be a mere statement of opinion
         1. esso v p it was seen that statement of opinion was a fact as they had special knowledge
   3. addressed
      1. sydney - addressed to mislead the innocent party and for the message to be passed on
   4. intend
      1. peek v gury- was intented to be acted upon
   5. induce
      1. eddinton- induce the mislead party into joining the contact
3. once all the five characteritics of a misrepresentation have been found
   1. need to establish which type of misrepresentation it is
      1. fradulant
         1. Doyle v Peek
            1. where FM established
               1. must be made 1. knowlingly 2. recklessly 3. without belief in its truth - burden of proof lies with claimant
            2. remedies
               1. innocent party able to recine and claim damages by tort of deciet
      2. negligent
         1. at common law
            1. hedly v bryne - obiter has a duty to care
         2. by statue
            1. Howard case- made without reasonable grounds of belief
         3. remedies
            1. only claim forseeable losses s 2 (1)
      3. innocent
         1. where there can be reasonable grounds for belief in the truth of the statement
         2. remdies
            1. misrep act 2 (2) can only get recission
      4. recession - equitable remedy
         1. limitations lie on liability
            1. affirmation - continue - expressly or actions
            2. lapse of time - for fm (runs out at time of fraud) and others date of contract itself
            3. rights of third parties- not available to them